Specialty Accounts

What is a Trust Account?

A trust account is created to hold assets—money or other property.

There are three parts to a trust:

• Grantor: They create and fund the trust
• Trustee: They manage the trust property/ funds
• Beneficiary: They benefit from the trust

*The Credit Union requires that the Trustee and Grantor be the same person.

A trust can have more than one grantor, trustee, or beneficiary. The grantor, trustee, and beneficiary can also be the same person.

Facts about trusts:

• The credit union only allows for revocable trusts
• At least one trustee/ settlor must have a primary account with the credit union
• All trustees/ settlors must qualify for membership
• A trust can have any share/checking product but cannot have an IRA or Loan opened on the account.
• Must have a completed trust account certificate
• Joint members cannot be added; only trustees

Items Needed:

• Valid Identification (required for all persons)
• Trust Agreement
• IRS EIN Assignment Letter

What is an estate account?

An estate account is a temporary bank account that holds an estate's money.

Facts about Estates:

• An Estate account can only be opened if the deceased individual was a member of the credit union at the time of their death.  
• Estate Accounts are set up when an Estate has been established by the court.
• A Personal Representative cannot transact on the personal account but should open an Estate Account and move the funds into that account as long as there are no joint account holders or beneficiaries on the personal account.
• Only the “Personal Representative” can open, close or transact on an Estate Account.
• You will need a copy of the Letters of Authority for Personal Representative document from the court or the Petition for Assignment of a Small Estate to show who has been appointed as the Personal Representative.
• A Tax ID number will need to be assigned to the estate by the IRS.

Items Needed:

• Membership Application
• Valid Identification (required for all persons)
• Letters of Testamentary or Administration
• IRS EIN Assignment Letter
• Copy of Death Certificate

What is a Rep Payee/Protected Person's Account?

This is when a  protected person's account is restricted by a court order or a third-party payer (social security or veteran administration).

There are two types:

Court Ordered: The funds cannot be released without a court order. A custodian is appointed to manage and control the custodial property until further notification is given by the court.

Representative Payee: A custodian is appointed to manage the funds. The title of the account reflects the protected person's ownership of the funds but does not give the protected person direct access to the funds.

Facts about Rep Payee accounts:

• Only the Representative payee can open, close or transact on the account
• Control/authority extends only to social security benefits and not other money or property
• The protected person will be listed as a beneficiary
• The protected person must never have access to the account
• If the Protected person has a personal account with money on deposit, that account cannot be changed to a Rep Payee account, unless the funds on deposit were a direct deposit from Social Security after the date of the appointment of the Rep Payee by the Soc Security Administration. The Rep Payee has not control over other funds the Protected person has, only the Soc Security direct deposits.
• The rep payee cannot conduct personal business on this type of account.
• Either the Rep payee or the Beneficiary can qualify for membership.
• If the beneficiary would like access to the funds, a letter from the Social Security Administration would need to be received stating that the Rep Payee account can be closed and the beneficiary can access the funds in the future.

Items Needed:

• Membership Application
• Valid Identification (required for all persons)
• Rep Payee Assignment Letter from Federal Agency

What is a conservatorship?

A conservatorship is set up to manage the financial affairs of a person who is unable to manage his or her own affairs.

Facts about Conservatorship:

• Only the “Conservator” can open, close, or transact on the account.
• Either the Conservator or the Protected Person can qualify for membership
• The Protected Person has no right to the funds.
• The Conservator cannot comingle their personal funds with the Beneficiary funds; the conservator will need their own account for their own transactions

Items Needed:

• Membership Application
• Valid Identification (required for all persons)
• Original Written Court Order; naming the Guardian, Beneficiary and terms of the agreement